TSX:CJR.B

Stock Analysis Report

Corus Entertainment

Executive Summary

Corus Entertainment Inc., a media and content company, operates specialty and conventional television networks, and radio stations in Canada and internationally.

Snowflake

Fundamentals

Good value second-rate dividend payer.


Similar Companies

Share Price & News

How has Corus Entertainment's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-8.2%

CJR.B

0.2%

CA Media

-0.2%

CA Market


1 Year Return

7.4%

CJR.B

14.4%

CA Media

1.1%

CA Market

Return vs Industry: CJR.B underperformed the Canadian Media industry which returned 14.4% over the past year.

Return vs Market: CJR.B exceeded the Canadian Market which returned 1.1% over the past year.


Shareholder returns

CJR.BIndustryMarket
7 Day-8.2%0.2%-0.2%
30 Day-1.3%-1.0%-2.9%
90 Day-6.6%1.9%-1.6%
1 Year12.0%7.4%18.9%14.4%4.6%1.1%
3 Year-37.3%-52.1%30.2%15.1%13.1%3.1%
5 Year-62.6%-75.6%29.1%2.5%24.7%6.7%

Price Volatility Vs. Market

How volatile is Corus Entertainment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Corus Entertainment undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CJR.B (CA$5.24) is trading below our estimate of fair value (CA$16.74)

Significantly Undervalued: CJR.B is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CJR.B is good value based on its PE Ratio (7.1x) compared to the Media industry average (14.1x).

PE vs Market: CJR.B is good value based on its PE Ratio (7.1x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate CJR.B's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CJR.B is overvalued based on its PB Ratio (0.7x) compared to the CA Media industry average (0.7x).


Next Steps

Future Growth

How is Corus Entertainment forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

8.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CJR.B's forecast earnings growth (8.8% per year) is above the savings rate (1.9%).

Earnings vs Market: CJR.B's earnings (8.8% per year) are forecast to grow slower than the Canadian market (13.1% per year).

High Growth Earnings: CJR.B's earnings are forecast to grow, but not significantly.

Revenue vs Market: CJR.B's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: CJR.B's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CJR.B's Return on Equity is forecast to be low in 3 years time (10%).


Next Steps

Past Performance

How has Corus Entertainment performed over the past 5 years?

-38.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CJR.B's earnings have declined by -38.3% per year over the past 5 years.

Accelerating Growth: CJR.B has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CJR.B has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (-32.2%).


Return on Equity

High ROE: CJR.B's Return on Equity (10.4%) is considered low.


Return on Assets

ROA vs Industry: CJR.B's Return on Assets is below or equal to the Media industry average last year.


Return on Capital Employed

ROCE Improving: CJR.B has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Corus Entertainment's financial position?


Financial Position Analysis

Short Term Liabilities: CJR.B's short term assets (CA$488.7M) do not cover its short term liabilities (CA$516.2M)

Long Term Liabilities: CJR.B's short term assets (488.7M) do not cover its long term liabilities (2.4B)


Debt to Equity History and Analysis

Debt Level: CJR.B's debt to equity ratio (99.1%) is considered high

Reducing Debt: CJR.B's debt to equity ratio has increased from 66.8% to 99.1% over the past 5 years.

Debt Coverage: CJR.B's debt is not well covered by operating cash flow (19.9%).

Interest Coverage: CJR.B's interest payments on its debt are well covered by EBIT (3.4x coverage).


Balance Sheet

Inventory Level: CJR.B has a low level of unsold assets or inventory.

Debt Coverage by Assets: CJR.B's debt is not covered by short term assets (assets are 0.3x debt).


Next Steps

Dividend

What is Corus Entertainment's current dividend yield, its reliability and sustainability?

4.58%

Current Dividend Yield


Dividend Yield vs Market

company4.6%marketbottom25%2.0%markettop25%6.0%industryaverage3.1%forecastin3Years4.6%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CJR.B's dividend (4.58%) is higher than the bottom 25% of dividend payers in the Canadian market (2.04%).

High Dividend: CJR.B's dividend (4.58%) is low compared to the top 25% of dividend payers in the Canadian market (6.03%).

Stable Dividend: CJR.B's dividend payments have been volatile in the past 10 years.

Growing Dividend: CJR.B's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.8%), CJR.B's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CJR.B's dividends in 3 years are forecast to be well covered by earnings (25.8% payout ratio).


Next Steps

Management

What is the CEO of Corus Entertainment's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Doug Murphy (56yo)

4.6yrs

Tenure

CA$4,061,945

Compensation

Mr. Douglas D. Murphy, also known as Doug, HBA, MBA has been the Chief Executive Officer and President of Corus Entertainment Inc. since March 30, 2015. Mr. Murphy served as the Chief Operating Officer and ...


CEO Compensation Analysis

Compensation vs. Market: Doug's total compensation ($USD3.09M) is above average for companies of similar size in the Canadian market ($USD1.55M).

Compensation vs Earnings: Doug's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.6yrs

Average Tenure

56yo

Average Age

Experienced Management: CJR.B's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

60yo

Average Age

Experienced Board: CJR.B's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCA$548,286,56131 May 19
Shaw Communications Inc.
EntityCompany
Shares80,630,383
Max PriceCA$6.80
BuyCA$123,98028 May 19
The Shaw Family Foundation, Endowment Arm
EntityCompany
Shares20,000
Max PriceCA$6.20
BuyCA$629,64024 May 19
G3 Capital Partners LLC
EntityCompany
Shares100,000
Max PriceCA$6.30
BuyCA$14,40026 Nov 18
Judy Adam
EntityIndividual
Shares3,000
Max PriceCA$4.80
BuyCA$47,60026 Nov 18
Douglas Murphy
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceCA$4.76
BuyCA$185,10026 Nov 18
Douglas Murphy
EntityIndividual
Role
Chief Executive Officer
President
Shares40,000
Max PriceCA$4.65

Ownership Breakdown


Management Team

  • John Gossling (53yo)

    Executive VP & CFO

    • Tenure: 3.3yrs
    • Compensation: CA$2.16m
  • Heather Shaw (59yo)

    Executive Chairman

    • Tenure: 20.1yrs
    • Compensation: CA$1.75m
  • Doug Murphy (56yo)

    President

    • Tenure: 4.6yrs
    • Compensation: CA$4.06m
  • Colin Bohm

    Executive Vice President of Content & Corporate Strategy

    • Tenure: 4.1yrs
  • Shawn Kelly

    Executive Vice President of Technology

    • Tenure: 3.6yrs
  • Greg McLelland

    Chief Revenue Officer & Executive VP

    • Tenure: 3.6yrs
    • Compensation: CA$1.32m
  • Cheryl Fullerton

    Executive Vice President of People & Communications

    • Tenure: 3.6yrs
  • Dale Hancocks

    Executive VP & General Counsel

    • Tenure: 0yrs
  • Julie Edwards

    Vice President of Facilities & Administration

    • Tenure: 0yrs
  • Heidi Kucher

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Michael D'Avella (60yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: CA$89.38k
  • Michael Boychuk (63yo)

    Independent Director

    • Tenure: 0.8yrs
  • John Frascotti (58yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: CA$119.64k
  • Cathy Roozen (63yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: CA$102.50k
  • Heather Shaw (59yo)

    Executive Chairman

    • Tenure: 20.1yrs
    • Compensation: CA$1.75m
  • Julie Shaw (58yo)

    Vice Chairman

    • Tenure: 11.5yrs
    • Compensation: CA$95.63k
  • Fernand Bélisle (74yo)

    Independent Lead Director

    • Tenure: 0yrs
    • Compensation: CA$90.00k
  • Doug Murphy (56yo)

    President

    • Tenure: 4.6yrs
    • Compensation: CA$4.06m
  • Mark Hollinger (60yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: CA$112.15k
  • Barry James (61yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: CA$90.00k

Company Information

Corus Entertainment Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Corus Entertainment Inc.
  • Ticker: CJR.B
  • Exchange: TSX
  • Founded: 1998
  • Industry: Broadcasting
  • Sector: Media
  • Market Cap: CA$1.111b
  • Shares outstanding: 212.00m
  • Website: https://www.corusent.com

Number of Employees


Location

  • Corus Entertainment Inc.
  • Corus Quay
  • 25 Dockside Drive
  • Toronto
  • Ontario
  • M5A 0B5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CJR.BTSX (The Toronto Stock Exchange)YesClass B Non-Voting SharesCACADAug 1999
CJRE.FOTCPK (Pink Sheets LLC)YesClass B Non-Voting SharesUSUSDAug 1999
9CODB (Deutsche Boerse AG)YesClass B Non-Voting SharesDEEURAug 1999
0UR4LSE (London Stock Exchange)YesClass B Non-Voting SharesGBCADAug 1999

Biography

Corus Entertainment Inc., a media and content company, operates specialty and conventional television networks, and radio stations in Canada and internationally. It operates through two segments, Televisio ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:33
End of Day Share Price2019/10/18 00:00
Earnings2019/08/31
Annual Earnings2019/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.